Misys names Crosby as new chairman

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Misys, the banking and software group, on Friday said that Sir James Crosby, one of the most respected names in the City, is to become its non-executive chairman.

Sir James, chief executive of HBOS until 2006, will replace Sir Dominic Cadbury in the summer.

One analyst, who did not wish to be named, said: “James Crosby bears some responsibility for the direction of HBOS, even though he stepped down in 2006.”

Sir James had always made clear he wanted to be chairman of a FTSE 100 company after he left HBOS but he did not wish to work in financial services.

At the time he left he had gained respect among investors for eschewing risky acquisitions, such as Abbey National in 2004.

He is a deputy chairman of the Financial Services Authority and has non-executive directorships of ITV and Compass, the catering group.

The news came after Misys beat expectations with its interim results.

Revenue for the six months to November 30 rose 22 per cent to £280m, while pre-tax profits rose from £21m to £67m. The revenue gain was partly enhanced by currency effects: in constant currency terms, it rose 6 per cent to £349m.

Profits were boosted by an exceptional gain on the £69m disposal of Misys Healthcare to Allscripts, in which Misys then took a 54.5 per cent stake. Adjusted pre-tax profits before exceptional items and gains were flat at £31m.

Mike Lawrie, chief executive, acknowledged that after warnings from other healthcare and banking software groups, such as Temenos, McKesson and Eclipsys, many expected Allscripts­Misys to follow suit.

“In the [US] hospital space, spending is slowing. But Misys is in the physician market place, which is being subsidised by President Obama’s stimulus package.”

AllscriptsMisys’s revenues rose 7 per cent. In banking and capital markets, revenues also grew at 5 per cent and 6 per cent respectively.